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The lack of interoperability in powerline networking products used in homes is dramatically slowing down potential growth, according to industry leaders speaking at a panel discussion at the International Consumer Electronics Show.

"If we had interoperability, the market would be a lot larger than it is," product manager for Netgear, Kartik Gada, said. Even though Netgear had a dominant position at least on the retail end of powerline networking, the company would prefer if all powerline networking products interoperated, he said.

"We'd rather have 30 per cent of a larger pie than 90 per cent of a smaller one," Gada said.

Powerline networking allows users to plug adaptors into regular power outlets in order to send data and video over existing power lines. About 7 million powerline chips that comply with one of the standards, HomePlug, have shipped, estimated senior vice-president of sales, marketing and business development for powerline chip maker Intellon, Andy Melder. "That's a trickle compared to Wi-Fi," he said.

Wi-Fi also initially had multiple groups vying to create a standard but the current implementation quickly won out.

"Wi-Fi didn't take off until there was awareness and it became a standard capability in laptops," global marketing director for Siemens Home and Office Communications Devices, a subsidiary of Siemens, Mark Nietubye, said.

Universal Powerline Association (UPA) is another powerline specification that isn't compatible with HomePlug.

The lack of interoperability of powerline networking products is closing the door to one important potential distributor of products: operators. Internet Protocol Television (IPTV) service providers are offering powerline adaptors to customers but they're doing so cautiously.

Operators are worried that customers will go to retail outlets to buy additional powerline adapters that don't work with those distributed by the operator and then require customer service help from the operator.

The panelists were clearly frustrated with the interoperability issues, but they don't see a way forward. While several international standards orgnisations are working on powerline projects, such groups are notorious for spending many years working through the process.

"As time ticks, other technologies aren't going to stand still," said Nietubye.

Some companies are also involved in the Consumer Electronics Powerline Communication Alliance, a group working on ways to ensure that HomePlug and UPA can co-exist.

"Coexistence is better than clashing," director of strategy and standardisation for Design of Systems for powerline chip maker Silicon SA (DS2), Victor Dominguez, said. Without a plan for coexistence, some products just won't work at all when paired with non-compatible products. But the downside to the coexistence idea was that it degradeds performance, said Melder.

Interoperability isn't the only thing holding back the growth of powerline networking. Price and quality of service issues are also barriers to growth, vice president of marketing for SiConnect, Robert Stead, said.

A pair of powerline networking adaptors costs far more than most Wi-Fi products and about the same as Wi-Fi products based on 802.11n, the most recent and fastest standard.

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